Credit union services firm CULedger, an outgrowth of a blockchain-focused consortium effort, is partnering with DLT startup Hedera to build a public system for cross-border payments, CoinDesk reported Tuesday.

The deal will see the two firms collaborate on a public network based on Hashgraph, a distributed ledger technology (DLT)-like network created by software company Swirlds, the report said.

The Hedera Hashgraph will pair with a new global identity solution, MyCUID, in an effort to build what CULedger calls "a comprehensive system" for identity and global payments, CoinDesk reported.

The current cross-border payments, according to Rick Cranston, COO of CULedger, is viewed as a "painful" process for parties involved, because of its high costs, limited visibility into transactions and more time involved, the report said.

"Hashgraph is fast and it provides visibility between the two parties at a significantly lower cost,” Cranston said. "It also eliminates concerns regarding fraud and default, since transactions are recorded immutably on the public ledger, and manual processes, since transactions are automated via smart contracts.”

In a separate statement, Mance Harmon, CEO of Hedera Hashgraph said ”CULedger continues to lead the financial services industry in innovative ways to apply distributed ledger technologies to the huge challenges that financial services firms and individuals face in making timely, secure, cost-efficient payments, be they across the country or around the world.”